The approved use of a property is verified with the URA
A worked RES examination question on verification due diligence, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
A prospective tenant has his heart set on running a small eatery from the unit, and the whole deal turns on whether that use is actually permitted. A prospective tenant asks a salesperson to confirm whether a shophouse unit may lawfully be run as an eating establishment. The salesperson wants to check the approved use against the authoritative record rather than take the landlord's word for it.
Whose records should she check for the approved use?
The answer, and why
Answer: A
The rule. The approved use of a property is verified with the URA. The SLA covers tenure and floor area; the HDB and the Town Council relate to public housing and estate charges, not the approved use of a private shophouse.
Why A is correct. Whether the shophouse may be run as an eating establishment turns on its approved use, which is confirmed with the URA.
The other options.
- C goes to the HDB, which deals with public housing, not a private shophouse's use.
- B goes to the Town Council, which handles estate charges, not approved use.
- D goes to the SLA, which covers tenure and area, not approved use.
Exam note. Approved use is a URA matter. Tenure and area are SLA; estate charges are the Town Council or MCST.
Want a full paper instead of one question?
The free half-paper is 20 questions with a Section B case study, explained to this same depth. The paid sets are ten full 80-question papers across Paper 1 and Paper 2, every figure checked against the current IRAS, CEA, HDB, URA and SLA position.
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Independent study material. Not affiliated with or endorsed by the Council for Estate Agencies. No pass guarantee — for study use only.